1

Cohesion policy post 2013

Jiri Svarc

Head of Unit for Finland, Latvia, Lithuania and Estonia

DG Employment, Social Affairs and Inclusion

2

Timeline

• October 5: Legislative proposals by the Commission:– General regulation– Fund specific regulation (ESF, ERDF, CF)– ETC regulation

• End of 2011: Communication from the Commission – Common Strategic Framework

• End 2012: Adoption of new legislative package and expected agreement on new budget post 2013

• Early 2013 Adoption of Common Strategic Framework (Council, EP)

• 2013: Negotiation of new programming documents– Partnership Contracts and OPs in parallel

• 2014: Entry into force and adoption of programmes

3

Key components of effectiveness in cohesion policy

• Alignment of cohesion policy with Europe 2020

• Reinforced strategic programming

• Thematic concentration

• Conditionality

• Stronger focus on results

• Streamlined delivery system

4

Strategic programming

Europe 2020

Common Strategic FrameworkERDF, ESF & Cohesion

FundEMFFEAFRD

NRP

Country recom’tions

SGP

Economic governance

Investment Partnership Contracts

objectives conditionalitiesindicators reporting

Operational Programmes

5

Common Strategic Framework

• Sets a comprehensive investment strategy for cohesion policy at EU level

• Translates the targets and objectives of Europe 2020 into investment priorities for Member States and regions

• Covers cohesion, rural development and fisheries policies and coordination with other EU instruments

6

Partnership contract

• Results from negotiation between the Commission and Member State on:

• Thematic objectives to address the priorities/targets established in Europe 2020

• Specific objectives and corresponding indicators that translate Europe 2020 priorities in a national and/or regional context

• Commitments for fulfilment of conditionalities

• Coordination with other EU funds

• Covers cohesion policy, the rural development policy and the maritime and fisheries policy

• Programmes (either thematic or regional)

• Translates agreement on contract into concrete investment priorities accompanied by clear and measurable targets

7

Thematic concentration

• Member States and regions will be required to concentrate EU and national resources on a limited number of thematic objectives linked to Europe 2020 strategy

– Regulation will establish a menu of thematic objectives directly linked to Europe 2020 strategy

– Within each thematic objective, there will be a number of investment priorities.

– Differentiation between more developed and less developed Member States and regions. Less developed Member States and regions may focus on a larger number of thematic objectives and/or investment priorities (also mentioned in the proposal for the MFF)

8

Architecture

• Three categories of regions – Less developed regions (GDP p.c. < 75% of EU average)– Transition regions (GDP p.c. between 75% and 90%)– More developed regions (GDP per capita > 90%)

• Cohesion Fund for Member States with GNI per capita <90%

• Territorial cooperation (3 strands: cross-border, transnational, interregional cooperation)

9

10

Budget for Cohesion Policy post 2013

  billion EUR (2011 prices)

Cohesion Fund* 68.7

Less developed regions 162.6

Transition regions 39.0

More developed regions 53.1

Cooperation 11.7

Extra allocation for outermost + northern regions 0.9

TOTAL 336.0

Connecting Europe facility for transport, energy, ICT 40.0

TOTAL 376.0

* Cohesion Fund will ringfence 10 billion EUR for the new Connecting Europe Facility

11

Focus on the less developed regions and Member States to increase

Share of budget 2007-2013 2014-2020

- EU15 49% 43%

- EU12 51% 57%

Aid intensity (EUR/cap/year) 2007-2013 2014-2020

- EU15 65 52

- EU12 249 264

12

Average annual aid intensity: Fair and balanced support for the 3 categories

0

50

100

150

200

Less developed regions Transition regions More developed regions

EU

R/i

nh

./y

ea

r

13

Reinforcing the role of the European Social Fund

Minimum ESF shares (ESF/ERDF) established for each category of regions:

• 25% less developed regions

• 40% transition regions

• 52% more developed regions

14

Focus of ESF

• Employment and labour mobility

• Skills, education and life-long learning

• Social inclusion and fight against poverty

• Institutional capacity and public administration

Combating discrimination on which ever ground, promoting gender equality and equal opportunities as horizontal principles.

Promotion of social innovation and transnational co-operation.

15

Thematic concentration of resources

Transition and more developed regions willhave to focus their allocation primarily on

•Energy efficiency

•Renewable energy

•SME competitiveness and innovation

Less developed regions will be able to devote their allocation to a wider range of objectives reflecting their broader development needs

20 % of total

16

• budget: EUR 40 billion + EUR 10 billion ring-fenced in the Cohesion Fund Facility

• will be centrally managed by executive agency

Connecting Europe Facility

17

Performance reserve

Strengthening the focus on results : 5% of the cohesion budget set aside and allocated during a mid-term review to the Member States and regions whose programmes have met their milestones related to the achievement of Europe 2020 objectives.

Failure to achieve progress may lead to suspension or cancellation of funding.

18

Implementation

• Possibility of multi-fund programmes

• Cross-financing maintained (5%)

• Equipment financed from the ESF

• More focus on financial engineering

19

Simplification (for beneficiaries)

Taking further the simplified cost options:– increasing the maximum amount for lump sums;– more standardisation and legal certainty;– obligatory for small projects.

Joint Action Plans– Agreement between the Commission and the MS on

a set of actions, including milestones, output and result targets setting the price for a policy objective.

– Payments and controls only based on agreed (intermediary and final) targets.

– No more eligibility issues, not based on real costs.

20

Preparation

• Start the preparations before the adoption of the legislative proposals.

• Determine and select national priorities. Select the Cohesion Policy thematic objectives and investment priorities that are in conformity with national strategic goals and priorities.

• Concentration on results and impact. “Everything is a priority” principle to be avoided.

• Involvement of various stakeholders at early stages of the preparation of national strategies.

21

Preparation

• The choice of the level of programming for the ESF – at national or regional, should primarily be made in view of the competences of the different levels of administrations in the fields of employment, education and social inclusion.

• Set up administrative structures and processes for:

– Preparation of strategic documents– Preparation for negotiations– Implementation of future programmes– Involvement of all relevant national, international,

governmental and non-governmental stakeholders

22

Questions…

• What could be the areas of ESF interventions post 2013 in Finland?

• What balance between regional and national programming?

• Would Joint action plans be welcome and in what areas of intervention?

23

Thank you for your attention.

Jiri Svarc

jiri.svarc@ec.europa.eu

DG Employment, Social Affairs and Inclusion